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London wheat closed up 95p for May 18 and November 18.
Sterling down, euro again worth 90p+. Brexit negotiations continue with little reported progress. Merkel / Christian democrats entering her 4th term but after reduced vote may not find coalition partners until 2018; coming under pressure from anti-immigration ‘Alternative’ party and recent Austrian election results.
US markets bounced on Thursday after flat bearish Wednesday but pricing bouncing along lows. Trump sounding on biofuel supported soya oil. US retail sales figures fell 0.8% September, third quarter growth lowest since 2013; markets perceive this as reducing interest rate rise possibilities.
UK attention is on 2018 prices and corn is premium to production costs but will it attract farmer selling?
Russia raised wheat export forecast for 2017 crop by 1.5 mmt to 33.9 mmt, this is supporting sentiment of plentiful global supplies; Egypt poised to buy another Russian 230,000 tonnes, in contrast Australian production is reduced.
author: Joe Beardshaw